SEOUL: South Korean stocks closed 1.49 percent up as investors bet that Greece and its international creditors were close to hammering out an agreement on its third bailout package, analysts said. The local currency lost ground against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) surged 30.35 points to close at 2,061.52. Trading volume was heavy at 421.5 million shares worth 6.15 trillion won (US$5.43 billion), with winners far surpassing decliners 683 to 147.
Analysts said the local market took to heart the news that eurozone leaders had met with the Greek officials through the night to discuss a compromise bailout deal.
Despite lingering differences among eurozone leaders on the terms of the austerity package, foreigners turned to net buyers later in the day on rumors that the European Central Bank had agreed to delay a July 20 deadline for debt repayment by Athens.
“The local stock market got off to a shaky start after talks on Greece dragged beyond the deadline, but it made strong recovery after news that Greece and its creditors were close to a deal on its third bailout program,” Lee Kyung-min, a researcher at Daishin Securities, said. “Investors bought market heavyweights that had been oversold, while offloading mid-cap shares.”
